Tougher air standards OK'd by Northeastern states

Luther Turmelle

Published 12:00 am, Thursday, February 7, 2013

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Connecticut and the eight other Northeastern states that take part in the Regional Greenhouse Gas Initiative (RGGI) on Thursday announced they have agreed to new standards that will further reduce air polluting emissions.

RGGI is a market-based program designed to reduce greenhouse gas emissions that was created in 2007, and Thursday's announcement by the nine states that participate comes after a two-year review of the existing standards and what implementing more stringent measures might mean.

"RGGI has been an enormous success in reducing carbon emissions, providing incentives for cleaner power generation, improving air quality, and funding clean energy initiatives -- all at a minimal cost to electric ratepayers," said Daniel Esty, commissioner of Connecticut's Department of Energy and Environmental Protection. "The changes in the program put forward today will allow us to continue moving toward a cleaner energy future in a manner that is consistent with the need to keep power cheap, strengthen our economy and grow jobs."

RGGI is what is commonly known as a cap-and-trade program, a term used to describe one of the mechanisms available for reducing air pollution in a nation or region while still allowing regulated companies some flexibility to meet standards that have been established.

Under such a system, companies are issued credits based on how large they are and what industries they are in. If a company's air pollution emission comes in below its allotted level under the credits, it has extra credits it may trade with other companies.

The changes to the RGGI program include:

--A reduction of the 2014 regional carbon dioxide budget, "RGGI cap," from 165 million to 91 million tons -- a reduction of 45 percent. The cap would decline 2.5 percent each year from 2015 to 2020.

--Requiring regulated entities to acquire and hold allowances equal to at least 50 percent of their emissions in each of the first two years of the three-year compliance period, in addition to demonstrating full compliance at the end of each period.

With the creation of the new rules, the participating states will now go back to their respective legislatures and regulatory agencies to implement the changes needed to comply with the program. The state specific changes would take effect Jan. 1, 2014.

The changes to the RGGI program are being praised by officials with Environment Northeast, a Maine-based regional organization with offices in Connecticut.

"RGGI has demonstrated that emissions can come down rapidly and affordably in the electric sector, and we applaud the states for building on the program's success and committing to further efforts to address one of the main sources contributing to climate change," said Daniel Sosland, ENE's president.